Analyst Predicts PlayStation 7 Will Be Major Departure from Previous Consoles in One Major Way

A leading industry analyst predicts Sony may abandon physical game releases by the PlayStation 7 launch. While the PlayStation 5 currently offers both disc and digital editions, market trends suggest a potential shift to a fully digital future for subsequent consoles.

The decline of physical game releases is already evident. Major AAA titles, such as Alan Wake 2 and Senua's Saga: Hellblade 2, skipped disc versions at launch. The PC market is entirely digital, and with Xbox seemingly embracing a similar all-digital future— evidenced by the disc-less Xbox Series S and the upcoming all-digital Xbox Series X— PlayStation's approach is increasingly under scrutiny.

Despite PlayStation's continued physical game releases for first-party titles, year-on-year declines in physical sales and a surge in digital spending are undeniable. Circana analyst Mat Piscatella, in a recent tweet, suggested that while PlayStation may maintain physical releases for one more generation, the PlayStation 7 could be a digital-only console, mirroring the PS5 Digital Edition. Piscatella also forecasted continued physical releases for Nintendo for two more generations, while advising Xbox users to expect an all-digital future.

Analyst Predicts PlayStation's Physical Game Sales Will Last Only One More Generation

Piscatella's insights carry weight, given his position as executive director at the NPD Group, a leading market research firm tracking console, game, and accessory sales in the US. Xbox's internal strategy has long favored digital distribution, and although physical games still contribute significantly to PlayStation's sales, the balance is shifting towards digital.

Digital game sales are significantly more profitable for publishers due to reduced production, packaging, shipping, and retail costs. Therefore, despite Sony's apparent commitment to physical media, their promotional efforts, such as Days of Play and PlayStation Stars, subtly encourage digital purchases. The eventual disappearance of disc drives from consoles is plausible, but whether the PlayStation 7 marks the beginning of the all-digital era remains uncertain.